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Aggregation-theoretic monetary aggregation over the euro area, when countries are heterogeneous

Barnett, William A. - 2003

We derive fundamental new theory for measuring monetary service flows aggregated over countries within the European Monetary Union (EMU). We develop three increasingly restrictive approaches: (1) the heterogeneous agents approach, (2) the multilateral representative agent approach, and (3) the...

Persistent link: https://www.econbiz.de/10009635917

The Great Depression and the Friedman-Schwartz hypothesis

Christiano, Lawrence; Motto, Roberto; Rostagno, Massimo - 2004

We evaluate the Friedman-Schwartz hypothesis that a more accommodative monetary policy could have greatly reduced the severity of the Great Depression. To do this, we first estimate a dynamic, general equilibrium model using data from the 1920s and 1930s. Although the model includes eight...

Persistent link: https://www.econbiz.de/10009636549

The impact of supply constraints on bank lending in the euro area

Hempell, Hannah Sabine; Sørensen, Christoffer Kok - 2010

the supply side of bank lending. The financial turmoil starting in mid-2007 had detrimental consequences for banks … examines the impact of supply constraints on bank lending in the euro area with a special focus on this turmoil period. The … empirical evidence presented suggests that banks’ ability and willingness to supply loans affects overall bank lending activity …

Persistent link: https://www.econbiz.de/10009640278

Interbank market integration, loan rates, and firm leverage

Ongena, Steven; Popov, Alexander - 2010

We study the effect of interbank market integration on small firm finance in the build-up to the 2007-2008 financial crisis. We use a comprehensive data set that contains contract terms on individual loans to 6,047 firms across 14 European countries between 1998:01 and 2005:12. We account for...

Persistent link: https://www.econbiz.de/10009640288

Cross-border banking and the international transmission of financial distress during the crisis of 2007 - 2008

Popov, Alexander; Udell, Gregory F. - 2010

by the following types of bank financial distress: 1) low equity ratio; 2) low Tier 1 capital ratio; and 3) losses on …

Persistent link: https://www.econbiz.de/10009640337

Financial factors in economic fluctuations

Christiano, Lawrence; Motto, Roberto; Rostagno, Massimo - 2010

We augment a standard monetary DSGE model to include a banking sector and financial markets. We fit the model to Euro Area and US data. We find that agency problems in financial contracts, liquidity constraints facing banks and shocks that alter the perception of market risk and hit financial...

Persistent link: https://www.econbiz.de/10009640348

The euro area Bank Lending Survey matters

Bondt, Gabe de; Maddaloni, Angela; Peydró, José-Luis; … - 2010

This study examines empirically the information content of the euro area Bank Lending Survey for aggregate credit and … leading indicator for euro area bank credit and real GDP growth. Notwithstanding the short history of the survey, the findings … results are supportive of the existence of a bank lending, balance sheet, and risk-taking channel of monetary policy. They …

Persistent link: https://www.econbiz.de/10009640399

Do bank loans and credit standards have an effect on output?

Cappiello, Lorenzo; Kadareja, Arjan; Sørensen, … - 2010

evidence for the existence of a bank lending channel of monetary policy transmission in the euro area. In addition, and in … potential negative repercussions on real economic growth of bank balance sheet impairments arising in the context of the …

Persistent link: https://www.econbiz.de/10009640409

The bank lending channel

Gambacorta, Leonardo; Marqués-Ibáñez, David - 2011

strength of the bank lending channel, recent evidence shows that bank-specific characteristics can have a large impact on the …

Persistent link: https://www.econbiz.de/10009640774

A monetary policy strategy in good and bad times

Fahr, Stephan; Motto, Roberto; Rostagno, Massimo; … - 2011

We evaluate the ECB’s monetary policy strategy against the underlying economic structure of the euro area economy, in normal times and in times of severe financial dislocations. We show that in the years preceding the financial crisis that started in 2007 the strategy was successful at...

Persistent link: https://www.econbiz.de/10009640775